Many businesses have multiple addresses, used for different purposes. It is important to understand which address will be used and when. It will also make managing business correspondence easier.
Two terms that are often confused are Business registration address of the company and the business address. Consider both from a legal perspective and discuss when you need both.
What is the transaction (business) address?
Your business address is the location where your company conducts its business activities. It is called a “business office address” because it is not the address where you are registered but where you operate.
You can use this address for all informal correspondence. For example, if you have a letter from a customer, bank, or utility provider, it won't be confused with government mail. You can display this address on your website, business cards, or anywhere else individuals and businesses can find information about your company.
Even if you operate from multiple locations, you cannot have multiple business addresses. You must choose a single location, which will be your overall business address. Also, the rules for accounts and business addresses are quite relaxed. It can even be a residential building (although this is not recommended).
What is the business registration address?
A business registration address is a legal requirement to ensure that every company operating in Vietnam is registered with the relevant authorities. This will be the address where government agencies will send official correspondence to you.
Providing your company with a registered address is a necessary step in the company formation process. So even before your company exists, you must have an address in mind.
For the transparency of the company, this address will be displayed on the public register. Therefore, your company's official address and contact point will be available to everyone. Therefore, having a company address instead of a residential address is a more appropriate option.
Any important letters or legal notices will be sent there, so some mail handling will be helpful. You don't want to miss a letter from the IRS just because it got mixed in with some junk mail.
Trading Address vs. Registered Address: Legal Differences
What is the difference between a registered business address and a business address from a legal perspective? Unlike a business address, a legally registered office address must be included on your correspondence and invoices. A business address does not have any legal obligations attached to it – it is simply the address you choose to display to your business contacts for non-statutory mail.
Many companies choose to keep these addresses separate. Some even have instructions not to give anyone their registered office address unless specifically requested.
Please note that both types of addresses can be changed at any time. If you change your trading address, you do not need to notify the authorities.
Business registration address
- Mandatory requirements of the company during the process of registering the company with the authorities
- Where the company was established
- Is the address to receive correspondence from authorities such as Tax, Insurance, etc.
- Considered the official address of the company
Transaction address
- Place where business activities are carried out
- Use with general business contacts (banks, customers, lenders, suppliers, etc.)
- Can be the same as the registered office or alternative address where you work
Situations where you will need your trading address as well as your registered address
It doesn’t have to be a registered business address or a business address – most of the time, you need both. As mentioned earlier, these are addresses for different types of mail. And to receive formal or informal correspondence, you can’t do without one or the other.
Let's look at this from the perspective of registering a sole trader and at that point you will need one of two addresses.
When you set up a sole trader company, you will need to provide your registered address. Once the company is in operation, all company correspondence will need to include the company number and registered address.
But maybe you don't want recipients to reply to this address. If so, make sure to display your business address prominently. The registered address can be in the footer of your company stationery in a small font. This framework also applies to LLCs. If you are curious about the cheapest way to register a company, consider G Office as your trusted partner.
G Office provides a complete, cheap and reputable business address registration solution in Ho Chi Minh City.
If you want to own an address in a prestigious location, the business registration process is quick without having to do it yourself, G Office can completely support you. You can register your company at any address in the system. virtual office for rent HCMC our and can also use it as a transaction address. Basically, you will get all your needs served in one place.
Moreover, when renting a virtual office at G Office, you also have the opportunity to receive a promotional package. FREE OF CHARGE business formation services. Or in other words, you can rent a virtual office and register your company for free. We will handle the procedures for you until the establishment documents are completed.
Note: Remember that you do not need to put your private residential address on any public registry. Not only is it unsafe, but it can also have a negative impact on your company's reputation and your private life.
Frequently Asked Questions
Is the transaction address the same as the business registration address?
- The main difference between a business registration address and a business address lies in their official purpose. A company requires a registered address during the incorporation process, while a business address is where business activities are primarily conducted.
Do I need a business registration address?
- Yes, a registered business address is a legal obligation of any company. Every company registered in Vietnam must have one.
Can I use my home as a business registration address or transaction address?
- Yes, you are legally allowed to use your home address. However, there are several drawbacks. Your company information is publicly disclosed, which can lead to unwanted visitors and unwanted mail being sent to your home. It can also damage your company's reputation, especially if you don't live in a reputable area.
In what cases should I have both?
- A company needs both a registered address and a business address to operate. But it can be the same address (i.e. the same physical location).
Can I change my business registration address or transaction address?
- Yes, you can do that if necessary. However, when changing the business registration address, you must go through the procedure with the legal authority about this change, the transaction address is not required.
Is the transaction address the same as the business address?
- Yes, the business address and the service address can be used interchangeably. It is basically the office address where you primarily conduct business activities. If a customer or supplier sends you mail, the mail will go to the business address.
